Brexit Update: Guernsey Signs Memo with Bank of England

The Guernsey Financial Services Commission has signed a Memorandum of Understanding (MoU) with the Bank of England.

The new agreement is a reaffirmation of a long-held relationship between the Guernsey regulator and the Bank’s Prudential Regulation Authority (PRA), which dates back to the days of the PRA’s predecessor, the Financial Services Authority. Through it, both parties will be able to share confidential information about regulated entities and formally co-operate on other supervision activities.

The PRA is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, insurers and major investment firms, regulating some 1,700 financial firms.

“There is a very productive and good relationship between the GFSC and the PRA, and we see this confirmation as good news for the Bailiwick, demonstrating that we are regarded as credible operators by our main counterparties,” said GFSC Director-General William Mason. “The MoU underlines the longstanding regulatory cooperation which has existed for a considerable period of time between the UK and the Bailiwick. It has been signed in the spirit of mutual co-operation and information exchange seen as crucial by the G20 countries and international standard-setters for financial services supervisors.”

Dominic Wheatley, Chief Executive of Guernsey Finance, the promotional agency for the island’s finance industry, welcomed the development. He said: “A good relationship between regulators in Guernsey and the UK is important for financial services in the island and particularly as both parties seek to reposition the trading relationship post-Brexit.”

The agreement was signed by Mr Mason and Sam Woods, Deputy Governor at the Bank of England for Prudential Regulation and Chief Executive Officer of the PRA. Mr Woods is also a member of the Bank’s Court of Directors, the Prudential Regulation Committee, the Financial Policy Committee, and the Board of the Financial Conduct Authority.